How to rethink your portfolio as the Fed cuts interest rates, according to top financial advisors

Group 1 - The Federal Reserve cut its benchmark rate in September and is expected to announce two more cuts before the end of the year, indicating potential upside for investors to boost earnings and balance risk [1] - This cutting cycle is different from those seen in 2008 and 2009 or during the COVID-19 pandemic, as the current economic conditions are relatively strong [2] - Analysts expect rate cuts, but it is not guaranteed that rates will continue to fall [3] Group 2 - Investors can capture higher yields now while managing risk, with a focus on U.S. Treasury bonds in the intermediate range, specifically those with maturities of three, five, and seven years [4][5] - A defensive approach with bond ladders is suggested, holding bonds with staggered maturities to mitigate credit risk, with allocations in the 4% to 5% range [6][7] - Maintaining a well-diversified portfolio across asset classes is crucial, with small caps showing potential but not being heavily concentrated upon [8]